NYT: Moody’s Changes U.S. Credit Outlook to ‘Negative’
Moody’s reaffirmed America’s credit rating at the highest AAA level but expressed concern about the nation’s fiscal trajectory amid congressional dysfunction.
🔴 MOODY'S CHANGES OUTLOOK ON UNITED STATES' RATINGS TO NEGATIVE. t.co/zYn2SWS3ux
— Breaking Market News (@financialjuice) November 10, 2023
Yesterday, the US government tried to borrow $24 billion by selling a bunch of 30 year debt.
It was a huge disaster. In order to get enough people to buy, the rate had to dramatically increase. Even then, then primary dealers had to buy 25% of the debt. The primary dealer are the buyers of last resort who have to buy.
China, Japan, Saudi Arabia, Russia … none of them are buying our debt. In fact, most are selling what they already have.
With few buying, the US government is borrowing more than ever. $1.5 trillion in the past 4 months and they announced another $1.5 trillion in the next 6 months. The US government will have to offer higher and higher rates to attracted lenders.
Yesterday, the US government tried to borrow $24 billion by selling a bunch of 30 year debt.
It was a huge disaster. In order to get enough people to buy, the rate had to dramatically increase. Even then, then primary dealers had to buy 25% of the debt. The primary dealer are… pic.twitter.com/3gbAoAUPdx
— Wall Street Silver (@WallStreetSilv) November 10, 2023
🔴 MOODY'S: POLITICAL POLARIZATION EXACERBATES FISCAL RISKS.
— Breaking Market News (@financialjuice) November 10, 2023
Today, at 1 PM ET the entire stock market turned lower.
What happened?
The 30-year bond auction drew 4.77% which was above the presale numbers by ~5 bps.
In other words, the auction performed far worse than expected as inflation worried persisted.
This was perceived as a sign… pic.twitter.com/nvCTejj74D
— The Kobeissi Letter (@KobeissiLetter) November 10, 2023
BREAKING: THE US GOVERNMENT IS FUCKED.
— Michael A. Gayed, CFA (@leadlagreport) November 10, 2023
BIDEN OFFICIALS REJECT MOODY'S SHIFT TO 'NEGATIVE' OUTLOOK, POINT TO REPUBLICAN 'DYSFUNCTION'
it's all the dysfunctional republicans' fault
— zerohedge (@zerohedge) November 10, 2023
h/t DOORBERT